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Write the government-risk allocation into the deal

In two Eleventh District disputes, courts examined the contract’s own allocation after government action affected a commercial operation. One lease put permit risk on the tenant and excluded rent; another dispute over a retail license and a shutdown order turned on an absent force-majeure clause and disputed performance. For a disrupted contract, identify the promised act, assigned government-approval duties, money carveouts, alternatives, and evidence of each party’s performance. Those decisions do not establish insurance coverage. 1,2,3

What Is Contract Frustration?

Contract frustration may fit your business when an international contract is exposed to political disruption or government action. If your main risk is a customer who cannot pay, compare trade-credit coverage instead. Read the national Contract frustration guide.

What to Watch for in Ohio

  • Check who promised to obtain the government approval

    In Wroblesky, the tenant promised to procure the licenses needed for its restaurant and bar, the lease did not condition rent on receiving a liquor permit, and force majeure expressly excluded rent and other charges even for restrictive government rules. The Eleventh District enforced that allocation. If approval is essential to your contract, identify who obtains it, whether it is a condition to payment or closing, and what happens if it is delayed or denied. 1

  • Connect the order to the exact performance each party owed

    In Cafaro, an Ohio mall operator relied on a governor’s shutdown order after a retail licensee was barred from operating, but the agreement had no force-majeure clause. The Eleventh District said the order alone did not establish that the operator had performed its own duties and reversed summary judgment because facts about access and performance remained disputed. Preserve the order, affected contract term, dates, substitute performance, and evidence of both sides’ acts. 2

  • For a goods sale, check the seller’s allocation and notice

    Ohio Revised Code §1302.73 concerns a seller’s delay or nondelivery under a contract for sale when an assumed contingency or good-faith compliance with a government order makes performance impracticable. If capacity is partly affected, the seller must allocate fairly and give seasonable notice, including the estimated quota. This statute does not govern every lease, service, or other contract. 3

Who Regulates Insurance in Ohio

Ohio Department of Insurance

ODI licenses insurance agents and agencies and provides a public agent and company locator. Its consumer complaint form accepts insurance complaints and lets you identify an agent or company. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 5% of gross premium, net of return premiums For Ohio-home-state surplus-lines placements, Ohio sets a 5% tax on gross premiums after returned premiums and requires the surplus-lines broker to collect it when the policy is delivered. A diligent search usually applies; a qualifying exempt commercial purchaser may request nonadmitted placement in writing after disclosure that authorized-market coverage may offer greater protection, and the policy requires a signed notice of no Ohio guaranty-association benefits. 7,8,9

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Ohio

  1. Does the contract make the permit, license, government authorization, or order-related condition a prerequisite to closing or payment, and who must obtain it?
  2. Does force majeure excuse only delay, or also rent, debt service, cancellation charges, or termination; what substitute performance is allowed?
  3. Can you document the order’s scope and dates, the exact obligation it blocked, alternatives available, and each party’s performance?
  4. For a sale of goods, what notice and fair-allocation steps apply if the seller cannot deliver the full quantity?

Contract Frustration in Ohio: FAQ

Does a government shutdown automatically excuse an Ohio contract? 1,2

No. The Ohio decisions discussed here turn on specific contract terms and records. Wroblesky enforced a permit and payment allocation in a lease; Cafaro treated the shutdown order as insufficient by itself to establish one party’s performance where the agreement had no force-majeure clause and facts were disputed. 1,2

Does Ohio’s UCC government-order rule apply to every disrupted contract? 3

No. Section 1302.73 addresses a seller’s delay or nondelivery under a contract for sale. Its notice and allocation requirements should not be carried over automatically to leases or service contracts. 3

Contract Frustration in Other States

Other Coverage in Ohio

Sources

  1. Wroblesky v. Hughley, 2021-Ohio-1063. Ohio Court of Appeals, Eleventh Appellate District (official opinion hosted by Supreme Court of Ohio); 2021; ¶¶8–10 (commercial lease, tenant permit duty, force-majeure text excluding payments), ¶¶46–47 (no condition precedent), ¶¶55–70 (frustration and allocation); Eleventh District decision, not a statewide Supreme Court holding. Accessed 2026-09-28.
  2. Cafaro-Peachcreek Joint Venture Partnership v. Spanggard, 2022-Ohio-4468. Ohio Court of Appeals, Eleventh Appellate District (official opinion hosted by Supreme Court of Ohio); Decided December 12, 2022; ¶¶29–39 (shutdown, frustration claim, contract-based force majeure and payment duties), ¶¶41–46 (government shutdown did not prove landlord performance; factual dispute; reversal and remand). Accessed 2026-09-28.
  3. Ohio Revised Code §1302.73, Excuse by failure of presupposed conditions. Ohio Laws, Ohio Legislative Service Commission; Current online section accessed September 28, 2026; effective date shown as July 1, 1962; subsections (A)–(C), seller’s government-order/impracticability excuse, fair allocation, seasonable notice and quota; this UCC section is limited to sale of goods. Accessed 2026-09-28.
  4. ohio insurance regulator. State insurance regulator; Official regulator home page and consumer/industry navigation. Accessed 2026-09-28.
  5. Ohio Department of Insurance Agent / Agency Locator. State insurance regulator; Public search fields for agent and agency name, NPN, license number, city, ZIP, residency, and license type. Accessed 2026-09-28.
  6. Ohio Department of Insurance Consumer Complaints Form. State insurance regulator; Online complaint form collects insurer, coverage, agent, issue, and supporting documents; page warns submissions may be public records. Accessed 2026-09-28.
  7. Ohio Revised Code §3905.36. Ohio Laws; Division (B): 5% of gross premiums after return premiums; surplus-lines broker collects from insured at policy delivery. Accessed 2026-09-28.
  8. Ohio Revised Code §3905.38. Ohio Laws; Division A: Chapter 3905 rules do not apply when Ohio is not insured's home state. Accessed 2026-09-28.
  9. Ohio Revised Code §3905.33. Ohio Laws; Divisions (B)(1), (B)(4): five-market diligence and ECP disclosure/written request; division (C): signed notice of no Ohio Insurance Guaranty Association benefits. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. About Risklytics. Risklytics; What we do; Who we insure; Licensing; Agency licenses table dated 2026-09-10. Accessed 2026-09-16.
  16. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  17. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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